In this assignment I have been asked to examine the arguments for and against the UK been a mixed economy of both private and public organisations. An economy consists of the economic system of a country, which is the process it uses to determine what is produced and how it will be distributed. There are three different ways to determine on what is produced and how it will be distributed, by either a market economy, mixed economy or a command economy.

A command economy is an economy that is largely controlled by the government and is made up of public organisations. The central government will make all the decisions regarding what good and services are produced and how they will be distributed. The government does this through a planning process so a command economy could also be known as a planned economy. Through a planning process the government will decide who to allocate resources to and will they direct producers what to produce meaning that consumers will have limited choice as there is little variety of goods and services. There are 3 main agents in a command economy the government, the consumers and the workers. In a command economy the government will ensure a more equal distribution of income and wealth, as everyone will be paid equal dependant of their job. The government will also provide merit goods like education, health care and pensions; this is through schools and hospitals. A merit good is a product that society values and judges that everyone should have regardless of whether an individual wants them. This type of economy will provide all citizens with a minimum standard of living. Command economies should be also be good for the environment because the government is about the greater good so should take into consideration the environment when deciding how many goods to produce but it doesn’t always work out that as they become more concerned about increasing productivity. A command economy can lead to...

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...What are the four functions of an economic system? Contrast the way in which market economies and mixed economies attempt to solve the economic problem. Use relevant statistics and specific examples to illustrate your answer.
The economic problem arises because of the scarcity of resources in relation to unlimited wants. A market economy such as Greece is an economy in which decisions are decided entirely by market forces such as supply and demand. In comparison, a mixed economy such as Australia is a combination of free enterprise and government control. Market and mixed economies will use different methods to attempt to solve the economic problem in terms of decision-making, resource allocation and distribution of final output. The four functions of an economic system that they will both answer to are: what to produce, how much to produce, how to produce and how to distribute production.
In a market economy, what to produce and how much to produce are solely determined by the operation of price mechanism where consumer preferences and sovereignty establishes the pattern of production and how much output is being produced. Producers will respond by increasing the production to meet demand and therefore more consumer wants will be satisfied and scarce resources are allocated more efficiently. This is one way of the market economy attempting to solve the...

...﻿Levels of Economic Activities
There are 3 stages of production
Primary Sector is the one in industry which extracts and uses the natural resources of the Herat
Secondary Sector is the one in industry which manufactures goods using the raw materials provided by the primary sector
Tertiary Sector is the one in industry which provides services to consumers and the other sectors of industry.
The 3 sectors can be compared by the number of workers employed or by the value of output of goods and services.
The more developed a country the more significant the tertiary sector is.
Public and Private Sectors of Industry
There are 3 main economic system: laissez faire or free market, command or planned economy, and mixed economy
Laissez faire or free market has no government control over factors of production. Businesses only provide goods and services if they make a profit as they’re all private. Prices depend on the demand of the goods.
Advantages:
Consumers are free to choose what they want to buy
Workers are encouraged to work hardly as they can keep most or all of their incomes because of low or non-existent taxes
Businesses compete with each other and this could help low prices
New businesses are encouraged to set up in order to make profit
Disadvantages:
There are no government provided goods or services available to everybody. Only those who can afford to buy these important services will benefit from them
There’s...

...﻿Chapter 4 Study Guide The Economic Environment
1) The recent global economic financial crises have led to proposals of more or less regulations?
2) Income, purchasing power, market size, and market type are all key elements of the political or the economic environment?
3) From the 1980s to the most recent global economic crisis, did countries turn away from the principles and practices of free markets or adopt the principles and practices of free markets?
4) There is no universal scheme to assess the performance and potential of a country's economic environment due to three conditions. What are they?
5) Gross national income (GNI), the broadest measure of economic activity for a country, is defined as ______.
6) In computing GNI, the value of a Ford car that is manufactured in Mexico using capital from the United States would be added to the GNI of which: United States or Mexico?
7) The measure of the value of production that occurs within a country's borders without regard to whether the production is done by domestic or foreign factors of production is commonly referred to as the ________.
8) To determine whether the standard of living within a country is rising or falling, economists would most likely use which of the following measures?
9) Some argue that gross national income, and its expression in terms of per capita, growth rate, or PPP refinements, focuses too much on...

...Economics Answers
Define the following terms:
1) Public goods are goods that when produced can be freely consumed by anyone, for example the justice system. They are made up of the following goods, non-exclusive and non-rival.
Non-exclusive goods are goods that people cannot be excluded from consuming, it is difficult or impossible to charge for its use which implies no private market as benefits cannot be denied to those who refuse to pay, for example public TV.
Non-rival goods or non-exhaustible goods are goods for which marginal cost of its provision to an additional consumer is zero which implies that the ‘allocative efficiency’ price should be zero. A private market is hardly likely to exist in the situations. An example would be defence and law.
Public goods are provisioned by the public sector mainly being funded by tax revenue and are free at the point of use.
2) Economic growth is quantitative change or expansion in a country’s economy; it is the most fundamental indicator of an economy’s health. It is measured by the annual percentage rate of change in a nation’s gross domestic product (GDP).
GDP is the economy’s total income accruing from output, the market value of all goods and services produced within an economic area during a certain period.
Positive economic growth signals a wealthier economy and increased prosperity. It means an increase in production which in turn...

...﻿EconomicEconomics is the science that studies how people and societies make decisions that allow them to get the most out of their limited resources. Because every country, every business, and every person deals with constraints and limitations, economics is literally everywhere. This Cheat Sheet gives you some of the basic essential information about economics.
the Big Definitions in Economics
When studying any subject, a key first step is to learn the lingo. Here are definitions for three of the most important words in economics:
Economics studies how people allocate resources among alternative uses. The reason people have to make choices is scarcity, the fact that we don’t have enough resources to satisfy all our wants.
Microeconomics studies the maximizing behaviour of individual people and individual firms. Economists assume that people work toward maximizing their utility, or happiness, while firms act to maximize profits.
Macroeconomics studies national economies, concentrating on economic growth and how to prevent and ameliorate recessions
Macroeconomics and Government Policy
Economists use gross domestic product (GDP) to keep track of how an economy is doing. GDP measures the value of all final goods and services produced in an economy in a given period of time, usually a quarter or a year.
A recession occurs when GDP is decreasing....

...1. Explain economics?
Economics is the study of how society allocates scarce resources and goods. Resources are the inputs that society uses to produce output, called goods. Resources include inputs such as labor, capital, and land. Goods include products such as food, clothing, and housing as well as services such as those provided by barbers, doctors, and police officers. These resources and goods maybe be considered scarce because of society's tendency to demand more resources and goods than are available. Two of the major approaches in economics are called 1) classical and 2) Keynesian. Classical economists believe that markets function very well, will quickly react to any changes in equilibrium without much government policy. On the other hand, Keynesian economists believe that markets react very slowly to changes in equilibrium (especial to changes in prices) and that active government intervention is sometimes the best method to get the economy back into equilibrium.
2. Why study economics?
One of the first benefits of learning about economics is if you get an economics degree. With an economics degree you can work in a variety of different fields from finance and banking, government, sales and marketing, insurance, etc. You can learn a lot of skills and knowledge that you can apply to other jobs or to your personal life. Learning about interest rates, exchange...

...Economics is the social science that studies the behavior of individuals, households,
and organizations (called economic actors, players, or agents), when they manage or
use scarce resources, which have alternative uses, to achieve desired ends. Agents are assumed to
act rationally, have multiple desirable ends in sight, limited resources to obtain these ends, a set of
stable preferences, a definite overall guiding objective, and the capability of making a choice. There
exists an economic problem, subject to study by economic science, when adecision (choice) is made
by one or more resource-controlling players to attain the best possible outcome under bounded
rational conditions. In other words, resource-controlling agents maximize value subject to the
constraints imposed by the information the agents have, their cognitive limitations, and the finite
amount of time they have to make and execute a decision. Economic science centers on the
activities of the economic agents that comprise society.[1] They are the focus of economic analysis.[2]
The traditional concern of economic analysis is to gain an understanding of the processes that
govern the production, distribution and consumption of goods and services in an exchange
economy.[3] An approach to understanding these processes, through the study of agent behavior
under scarcity, may go as follows:...

...worldwide movement towards the market economy and away from the planned economy.
Globally, compared with command economy, market economy has proved more successful in raising living standard, economic growth and economic efficiency. Here comes the question that to what extent shall we move from planned economy to market economy.
Market economy is an economic system, which resolves the basic economic problem mainly through the market mechanism and limit government role. It relies on the profit motive and consumer sovereignty. In contrast, in a command economy, resources are allocated by the government through a planning process, with large-scale government intervention.
One advantage claimed of a market economy is that there is dynamism. In comparison to planned economy, free market economies have grown at a considerably faster rate than planned economies.
By moving to the market economy, consumers will benefit from more choices of goods and services. There are strong incentives built into the market system to innovate and produce high quality goods. Companies failed to do both are likely to be driven out of the business by more efficient firms. This cannot be achieved in planned economy, which lacks variety of products.
Moreover, the profit motive and competition promote economic efficiency in a market economy. Firms, who produce what consumers want at the lowest possible prices, are...